Applications for permission to appeal

Whether a stay on execution applies to an order when under appeal

The background

In Longe v Bury Hill Estate Management Limited [2018], the respondents managed a building within which the appellant held a lease of a flat. An amount of service charge remained unpaid, and default judgment was obtained in favour of the respondents. Following an unsuccessful application to set the order aside, the costs for which the appellant was ordered to pay, the respondent also obtained an interim charging order against the flat.

The appellant requested permission to appeal, arguing that the default judgment had been fraudulently obtained and also seeking a stay on the costs order.

The decision

The court refused the application for a stay of the costs order, on the grounds that the basis of the appeal was weak.

There was no good reason for the stay to be granted; the appellant’s arguments relating to the grant of the interim charging order could be made at the return date for the charging order application.

Advice and action for landlords

This is an affirmative decision by the High Court, confirming that no automatic stay of execution on an order arises where the decision is under appeal and a good reason must exist for a stay to be granted. In this case, the appellant’s weak appeal grounds could not support his request for a stay.

Moreover, and in line with Rule 52.16 of the Civil Procedure Rules, unless the appeal court of the lower court orders otherwise, an appeal does not operate as a stay of any order or decision.